The blockchain analysis company, Chainalysis is known for its work in tracking cryptocurrency transactions, especially with respect to Bitcoin. A surprising statement from the company alludes to the fact that it is not really anti-privacy as far as digital currencies are concerned.
Jonathan L., who is a co-founder of the company, stated that privacy cannot be considered bad by highlighting that transparency should not get to the point in which the privacy of the individual user is compromised.
Cryptocurrency Privacy Debates
There have been debates on the need for privacy in cryptocurrency use. This is especially due to the fact that governments and regulators are keen to make sure that users of digital assets do not operate in a world of their own since transparency is essential for accountability.
Issues such as taxation, financial services control and the need to prevent abuse through illicit activities has made many regulators stance anti-privacy. However, the Chainalysis chief stated that despite the need for transparency, complete elimination of privacy would not be in the interest of the coin market or crypto industry in general.
It can be recalled that one of the main reasons why the industry has continued to attract adopters is that these are people who are independent minded and actually want to take control of their finances through the elimination of meddlesome third-parties.
According to Jonathan L.,
There will be the invention of privacy-enhancing technology. Complete transparency is not necessarily an ideal place to be either, but ultimately there needs to be the ability for regulators and businesses with the appropriate levels of legal authority and oversight to tackle the illicit activity that abuses the systems.
He stated that he is neither in support of complete privacy or no privacy at all. He said that situations in which there is no way to trace or investigate the activities going on in the industry may not be the best since it creates room for uncertainties. Nevertheless, the complete elimination of privacy would make uses vulnerable to vices such as malicious activities of hackers as we have experienced in the recent past.
Privacy solution
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